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ludmilkaskok [199]
3 years ago
6

Which party to a contract absorbs the preponderance of cost risk when a firm-fixed-price (ffp) contract is used?

Business
1 answer:
VladimirAG [237]3 years ago
8 0

A firm-fixed-price (FFP) contract is a type of contract in which the price is not subject to any adjustment or changes that the contractor may experience on the cost during performing such contract. This contract type places upon the contractor the maximum risk or full responsibility for all costs and the profit or loss that may result.

Therefore, the answer to this question would be:

<span>“The contractor or the seller”</span>

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Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to
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The trial balance of D. Savage Company at the end of its fiscal year, August 31, 2017, includes these accounts: Inventory $17,20
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Answer and Explanation:

The preparation of the cost of goods sold is presented below:

Cost of goods sold statement

Opening inventory  $17,200

Add:

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Less:

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Less:

Closing inventory  -$23,000

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2 years ago
The executives of Garner-Wagner Inc. are considering a project that has an up-front cost of $3 million and is expected to produc
zavuch27 [327]

Answer:

The projects net present value = −$1,104,607

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The net present value is the sum of the present values of all expected cash-flows from t=0 to t=n

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PV of An Ordinary Annuity= \frac{PMT[1-(1+i)^{-n} ] }{i}

where PMT is the the equal payment cash inflow received at the end of each period

i is the project's cost of capital and

n  is the number of periods making the annuity

Therefore: Net Present value of this investment given a 10% project cost of capital is calculated as follows:

NPV=-$3million + \frac{($500,000*[1-(1+0.1)^{-5} ]) }{0.1}=-$1,104,606

6 0
3 years ago
Which type of professor is essentially a
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An adjunct professor is not required to participate in the academic responsibilities and research like the other full time professors.

Basically, they are hired on the contractual basis.

Learn more about the adjunct professor here:-

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5 0
1 year ago
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